However, Thai Investors’ Association president Wichai Poolworaluk said his association would not be taking any action.

“I agree with the SEC’s decision [to waive the need for a tender offer for Shin Satellite and iTV] as there are no changes in management following the change in their parent firm’s shareholder structure and their revenues are not significant for Shin,” he said.

However, he declined to comment on the tender offer for Advanced Info Service Plc, which, at Bt72.31 per share, is well below the market price of around Bt100. He said he did not know much about the appropriate price for the stock.

However, mutual-fund managers expressed concern over the SEC’s decision because they said there were heavy rumours before the deal was done and the SEC had demonstrated a double standard in its treatment of the case.

“If it had been other stocks, the SET would have rushed to call for a ‘halt’ sign, or call for a declaration, but both parties did nothing,” said a fund manager, who commented on condition of anonymity.

“I also have doubts about the SEC’s action,” said another fund manager. “They may have an answer for the way they acted, but they have to unveil what’s going on to the public.

“The rumours were heavy, especially in the two weeks before the deal was done. The Bank of Thailand also commented about the unusual inflow of foreign funds, so the news must have leaked out to some groups of investors. One of the SEC’s roles is to ensure that all investors have the same information. What happened was that some groups of people knew something more than others. Therefore, insider trading was high.”

The stock regulators have been heavily criticised by retail investors and others in the stock market for apparently turning a blind eye to what was happening and failing to suspend trading in Shin’s stock amid spreading reports that Temasek Holdings would buy out the Shin shares held by the Shinawatra and Damapong families.

After the reports began late last year, the SET simply asked Shin to clarify the news and the company answered that, at that time, it had not yet received any reports from major shareholders about the deal. Shin’s stock increased significantly in value after the reports.

In addition, investors and others involved in the stock market are questioning why the SEC has allowed Temasek’s subsidiaries to make a tender offer for Advanced Info Service’s stock at Bt72.31 per share – far below the market price of about Bt100.

“The price is calculated correctly according to the rules, with the median price being calculated from lowest and highest prices of the stock,” said a fund manager, “but in reality, no one would want to sell the shares at that price. Come on! The stock is being traded above Bt100 per share!

“It is a ridiculous price, which shows the intention of the offerer. Like other previous tender offers, if the offerers don’t want to buy any more shares, they just take the loophole in the law and offer this kind of ridiculous figure.

“This deal has set the pace for more of the same kind of deal,” the fund manager said. “The others will find the loophole, take as much advantage as they can, and walk away without being charged.”

Oranan Paweewun,
Piyarat Setthasiripaiboon
The Nation